Ford offers buyouts to all UAW workers

Reuters ^

[Sub-Driver]

Ford offers buyouts to all UAW workers Photo 3:27pm EST

DETROIT (Reuters) - Ford Motor Co said Monday it is offering its 41,000 U.S. factory workers buyouts and early retirement offers in a bid to reduce its payroll costs as it aims to return to profit by 2011.

The buyouts mark the second round of such offers for Ford workers represented by the United Auto Workers union. About 1,000 workers took offers to leave the automaker in July.

Ford workers have until late January to accept the offers, which include payouts of up to $70,000 cash for newer hires to $60,000 cash for veterans already eligible for retirement.

"Despite a strengthening in our business, we still have a surplus in employees," said Ford spokesman Mark Truby.

[org.whodat]

they can leave Detroit for a right-to-work state.

Not that simple, there are contract in place that allows transfers at same rates.

[BP2]

Bwa-ha-ha.

The unions aren't getting any love, first from ObamaCare, then from this with Ford.

Yeah, I see this as attempt at Union Busting. Sorry UAW — like the rest of your organized-worker ilk, you've gotten too greedy and have pushed up the cost of cars. You've successfully bastardized the simple concept of watching out for the little guy INTO making a good company become a bloated bureaucracy that has to cope with worker Slowdowns and Strikes if Ford doesn't book 4-star hotels for UAW management when they go to out-of-town training classes.

Ford's in a good spot to do well once Obama’s removed from office and/or his Federal corporate policy is neutralized, especially with the OTHER car makers trying to sell Green cars that not so many want.

[equalitybeforethelaw]

Even if Ford is able to buy out the union workers, the union bosses and union organizers will still be lurking, if not on the inside, then from the outside.

Ford plans on moving much of its manufacturing offshore. The first rule of portfolio management is spread the risk. Having too much of your portfolio at the mercy of UAW flunkies and their pols is a mistake learned the hard way. Don’t expect Ford to cede any strategic interests to the UAW. Expect Ford to cut them completely off under an anti-trust suit. UAW will not be allowed on Fords premises. No competitor allows there competition run of the shop. Remember, UAW is a auto maker and competes with Ford. Any time the UAW starts sucking up to Fords non-union workers watch Ford give their workers a raise. I wouldn’t be surprised to see Ford workers earning more than UAW workers in a matter of two years. Starve the beast - cut off its union dues.

[Loud Mime]

I will buy the car that has the least attachment to the UAW and the evil politicians they support.

[wastedyears]

[US Navy Vet]

Sounds like FoMoCo is bent of shedding some dead weight and growing. Now all they have to do is close EVERYTHING in IN, OH, MI, IL and move Lock, Stock, and Barrel to the S. (right to work) States and REALLY GROW!

[NVDave]

You might want to have a trailing stop under it, because the easy technical reaction move has happened and you (and likely many others) are sitting on some very tidy short-term gains. On a cash flow basis, the stock is overvalued (and has been since about, oh, the $5 range). This buy-out is going to cost them more cash in the short term, ie, they’re taking on even more short-term pain for long term survival.

They’re still levered up to their eyeballs, they’re still not profitable, and the only thing in F’s favor right now (I mean *solidly* in their favor) is that their management isn’t the typical idiot Detroit management. This move, if it plays out well, would make F a long-term buy IMO - like going out five years.

In the short term, I think many auto industry analysts are being far too rosy in their expectations of how quickly the auto industry can turn itself around, because they’re overestimating the ability of consumers to buy new cars. When about one-third of autos were bought with HELOC’s... and HELOCs are as good as gone, there has to be a new credit source to make up for that easy credit at cheap rates in order for the auto industry to snap back.

I just don’t see any easy source of credit coming down the road quickly.

[RinaseaofDs]

Ford’s going where GM and Chrysler can’t, and by the way, Boeing is paving the way. Mulally isn’t an idiot.

Since the union won’t give Ford the same deal they gave GM and Chrysler, then they are voting them off the island.

Buy them out, take the hit, and move out of Detroit for Georgia and South Carolina. Now you have non-union Fords competing against union GM and Chrysler. No contest. Feds will have to unfairly extend GM and Chrysler all kinds of help to compete. It won’t take long, maybe two years, and the public will vote with their feet against Government Motors and Subsidysler.

[A message]

Ford is smart to get out from under the UAW. If they can get enough of the UAW to take the buy-out, I might just buy a buttload of F.

I have owned Ford's for nearly 20 years. If I do have to buy a new car it will be for now a Ford.

Last week I had a 2010 Ford Fusion 4dr rental car and not only did it handle well that car had some giddy up under the hood.

[musicman]

"I like Ford. I loathe the stinking UAW."

[Soul Seeker]

Hm. If I were a new employee offered 70,000 to leave that would be tempting. Provided I could find employment elsewhere.

[Riley]

That site had some interesting links on it. I liked the TV news exposé on the two union bosses raking in boatloads of overtime when they were showing up late and leaving early on a consistent basis.

[clintonh8r]

Excellent. My faith in American industry is being restored. First, Ford doesn’t ask for a goverment handout and now this. Maybe I should buy Ford stock.

[reagan_fanatic]

I’ve got a Fusion now, and I’m already looking at an Edge as my next vehicle. I’ll be damned if I buy anything from Government Motors.

[stevecmd]

For all I care they can stand at the Rosedale exit off I-695 in Baltimore with a sign asking for change and saying have a nice day.

[MountainYankee]

This is very smart management strategy. It lowers the workforce by attrition as opposed to the meat ax approach. Ford is one of the few businesses who refused bailout $$. Buy Ford !

[KYGrandma]

When my husband, salaried Ford, was offered a buyout two years ago, he was told to take it. Nothing, even your job, was guaranteed if you stayed.

[americanophile]

Indeed. GM & Chrysler aren’t car companies any more, they are government-owned and managed UAW employment agencies that produce vehicles as a byproduct - their business is keeping UAW members employed. Go Ford!

[RockinRight]

Businesswise, yes, but not sure who’s gonna bite - 60 grand lump sum for someone who probably makes almost that in a year might not be too enticing.

[St. Louis Conservative]

They need to dump the UAW for good.